The Renter’s Reform Bill 2025: A Fairer Future for Renting?

Sweeping changes to landlord and tenant law currently making their way through parliament promise to transform the private rented sector. The Renters’ Rights Bill is the latest version of the Renters’ Reform Bill, which was abandoned last year when an early election was called. Since that time, the Bill has been slightly reworked, and the final version is likely to become law later this year.

As a community-focused lettings agent with over 30 years’ experience of letting in central London, we have been following the Bill’s progress with keen interest. But what will the changes really mean for landlords and tenants? And what impact will these root-and-branch reforms have on rental supply, demand and pricing?

What New Laws for Landlords and Tenants Can We Expect?

An End to Section 21 ‘No Fault’ Evictions

Under Section 21, private landlords renting out properties in England can easily evict tenants who have done nothing wrong. When the Bill becomes law, landlords will use an enhanced version of Section 8 for all evictions. They must give tenants notice to quit for a valid reason established in law, such as wanting to sell the property or move into it themselves. Landlord rights will also be strengthened under the new Section 8 rules, making it easier to regain possession in cases of anti-social behaviour or non-payment of rent.

Assured Shorthold Tenancy Agreements Convert to Periodic Assured Tenancies

The government intends to convert all Assured Shorthold Tenancy agreements (ASTs) into rolling ‘periodic’ tenancies. Periodic tenancies have no fixed end date so that effectively ends the practice of offering fixed-term tenancies, commonly of six or twelve months. From day one of the tenancy, tenants will be able to give two months’ notice, while landlords must give four months’ notice.

A Price Cap and Time Limits Imposed on Rent Rises

Landlords will only be able to increase the rent once a year using a Section 13 procedure, and they will no longer be able to write rent rises into contracts. So-called ‘bidding wars’, where applicants who want the same property are encouraged to bid against each other, will be outlawed.

Rent prices must reflect local market rates. If the price demanded is higher, the tenant can challenge the rise by appealing to a First-tier Tribunal, where officials will decide whether the increase is reasonable.

Introducing a New Ombudsman Service

The Bill refers to this service as ‘the Landlord Redress Scheme’ and all landlords will be legally required to join, even if they use a lettings agent signed up to the scheme. Tenants can use this service free of charge as an alternative to taking their case to court. The service aims to reduce the pressure on the courts system and speed up the resolution of disputes.

A New Private Rental Portal with Landlord Database

In future landlords will need to register their details, together with information about their properties, on a database. They will pay an as yet undisclosed fee to register, which the government says will be ‘proportionate and good value’.

The portal will provide information and guidance to landlords, helping them keep up to date with compliance. Prospective tenants will be able to find information on landlords and properties, while local authorities will be better able to track failing properties for enforcement purposes.

Improved Rights for Tenants Asking to Keep a Pet

While landlords will still be able to state ‘no pets’ in marketing details, existing tenant requests to keep a pet must not be ‘unreasonably refused’. Tenants can challenge the landlord’s decision by using the new Ombudsman service, or going to court. Landlords can, however, insist on the tenant paying for pet insurance or require them to pay for cover that has been arranged on their behalf.

Outlawing Discrimination

It will no longer be possible to refuse to rent a property to people on benefits or families with children. However, landlords will be able to reject an applicant on the grounds that they would be unable to afford the rent.

Decent Homes Standard and Awaab’s Law

Ensuring that your rental property meets the Decent Homes Standard will be another legal responsibility under the Renters’ Rights Bill. Landlords could face penalties if they fail to provide a good quality home, free from hazards. Awaab’s Law, created after a toddler tragically died from exposure to black mould in social housing, will be applied to the private rented sector (PRS). Details as to how the law will work for PRS homes are still under discussion.

How Can We Support You

As your trusted advisors, we are here to support you every step of the way, keeping you abreast with all of the latest updates, and helping you understand how these changes will impact you as a landlord. We will be sharing further information in the weeks and months to come, to help you understand exactly what actions will need to be taken in haste of the Bill becoming Law.

While this may seem like a significant change, it is worth noting that the average length of our tenancies is around 25 months, and we do not envisage that the RRB will change this.

The RRB will however mean than any choice concerning the use of the property will need to be carefully thought over before making a decision. We are of course here to guide you on what would be best for your given circumstance. This year, we have served 11 notices out of our 500-strong portfolio, only one of these notices would have fallen outside of the new Section 8 Grounds.

If you have any questions or concerns, please do not hesitate to reach out. We are always available for one-on-one calls to discuss how these changes will affect your property.